GRR - Grange Resources

[leyy]

join the party guys.

GRR still has alot further to go.

Iron ore pellets have been at an all time high, southdown project has been iced for now (which is good)

cash costs should reduce now since the rock slide.

Quarterly report should come out next week.

Increased Iron prices and decreased cash costs will make GRR go much higher, no debt, 200m cash on hand.

IMO GRR will over 50 cents by end of Feb, if Iron ore prices hold.

I've already had a good run with GRR, but continue to hold as it is still undervalued and has more to go.


good luck to all holders.

 

[Trembling Hand]

Oh is that what they do......

 

[skc]

Oh is that what they do......

GRR is well positioned as a laggard playing catch up in the great iron ore revival. GBG is another one but GRR is preferred as they are actually profitable at the current iron ore price. The only problem is whether the iron ore revival is sustainable.

I had my eye on this them when they were 26c a few weeks back. It moved without me so I am pi$$ed off and will probably not buy it as I continue to sulk over it forever.

 

[notting]

in @ 0.355, stop @0.32

I'll buy your stop

 

[Trembling Hand]

I believe thats my stop.....




Never looked that good from 30 min after my entry. What looked like a reasonable bar reversed on the close and we never really got going again.....

 

[tech/a]

I'll buy your stop

Ill bet he doesnt buy yours.
Ill bet you dont take yours.

 

[notting]

How much?

 

[Smurf1976]

Well it's now down to 17 cents and came to my attention recently on the basis of yield.

Also, the company and its' operations were the subject of a recent one hour prime time TV documentary on Southern Cross TV (although I think this may have aired only in Tasmania?).

That's about all I know about them, apart from having seen their physical operations from the outside and noting that the share price is the lowest it has been for at least a decade and still going down.

 

[tinhat]

GRR is getting smashed today. Down 10% and currently at 0.135. Huge volume 5.7m traded so far.

 

[prawn_86]

Interesting. Currently yielding nearly 15% but still in a vicious downtrend. Will they maintain the dividend into the future...

 

[tinhat]

Interesting. Currently yielding nearly 15% but still in a vicious downtrend. Will they maintain the dividend into the future...

Gosh no. EPS are forecast to continue to tumble. Thompson Reuters consensus forecast is for div to half to 1c per annum. Only five analysts following though. I wouldn't be surprised if it got a relief bounce of today's low of .013 though.

 

[jbocker]

Encouraging quarterly report released today after their difficult Tasmanian climate season. If continues to pay 2c dividend per year would be nice 10% return.

 

[jbocker]

It had jumped yesterday, and today appears to be a lot interest lining up for the open. No Announcement though.

 

[oldblue]

It had jumped yesterday, and today appears to be a lot interest lining up for the open. No Announcement though.

The Australian had a bullish headline about the iron ore miners today. Subscription only, so I couldn't access the article but someone may be able to précis the gist of it.

:1zhelp:

 

[jbocker]

Good report card. This company appears to have got business in very reasonable shape. Done mine redevelopment still maintained its cash balance, has nearly $160M in the bank, very little debt. Increased its resource figures. Has committed to a dividend and a bonus dividend. Loving it.

 

[jbocker]

Since my last post I had bailed out of this company with some profit. Kept an eye on it as it drifted down to 10c. Just got back in at 9.7c over the last week, because I thought they would honour their promise to keep paying dividends. Announced a 1c dividend. I'm glad they stuck to their word. Still have a good cash position.

 

[The Triangle]

Well, not much has changed. 9 cent shares, cash is higher then the market cap and they appear to be well on their way to a solid operating cashflow this year. My concern is the potential for capex to exceed operating cashflow. I just have no idea at the moment. Iron is unloved and GRR is off the radar. Maybe because many people are xenophobes and don't like foreign control?

About 600 kt per quarter of iron pellet
Prices between 80 and 90 AUD/t
C1 mining costs of about 65/t
~$120 m in the bank gaining interest.

That gives them 30 to 50 million to cover capex and admin costs. So, i doubt we'll see a dividend this half, but if they can get all other costs below 20 million a year then I think they could give out a 1cps divi or half cent per half come next reporting period.

 

[systematic]

This is my pick for the monthly comp in September.

Has just put out a half year report with results up from previous. Price has reacted positively, up 15% since results released.

More interesting for me is that this company has appeared over the years in various screens I've looked at. It's been a value play, a momentum play, a cheap stock rising, a quality play...and even an NCAV play at one point. It's one of my 5 in the annual comp as well. I also own this one, so here's to a good month ahead!

 

[lewisjoshua]

I think its time to look at Grange resources again. Its trading lower than net tangible assets.

Profit drivers:

- Magnetite gets a higher price in the market against Direct Shipping ore(DSO) but does cost more to process. Mining magnetite is a high volume business but it is more environmentally friendly. As a result there is a demand from China for the material.



- Owns a majority stake in the southdown magnetite project; joint venture between Grange resources(70%), and SRTA(30%). SRTA in turn is owned by Sojitz Corporation and Kobe Steel. Capability to export 10 million tonnes of premium magnetite concentrate.



- Agreement in place for the sale of 1 million dry metric tonnes of iron ore pellets per annum till 2022 to Jiangsu Shagang Group (The price is determined by benchmarks for iron ore). The group also owns 46.68% of the company.



Comments:

- Purest forms of iron ore: Magnetite – Haematite – Limonite – Siderite.



- The company also holds a 51% stake in a real estate venture(yes, you read right!) called ROC property. There are 3 projects in the pipeline which are targeting the luxury market. Each development only has about 5-8 units.



- Cash per share of $0.17(including debt).



- The premium in price is delivered through 2 fronts; additional iron content and quality premium.



- Book value/share of $0.41 and working capital of $0.21 along with net current assets of $0.16 a share

 

[sptrawler]

I think its time to look at Grange resources again. Its trading lower than net tangible assets.

Profit drivers:

- Magnetite gets a higher price in the market against Direct Shipping ore(DSO) but does cost more to process. Mining magnetite is a high volume business but it is more environmentally friendly. As a result there is a demand from China for the material.



- Owns a majority stake in the southdown magnetite project; joint venture between Grange resources(70%), and SRTA(30%). SRTA in turn is owned by Sojitz Corporation and Kobe Steel. Capability to export 10 million tonnes of premium magnetite concentrate.



- Agreement in place for the sale of 1 million dry metric tonnes of iron ore pellets per annum till 2022 to Jiangsu Shagang Group (The price is determined by benchmarks for iron ore). The group also owns 46.68% of the company.



Comments:

- Purest forms of iron ore: Magnetite – Haematite – Limonite – Siderite.



- The company also holds a 51% stake in a real estate venture(yes, you read right!) called ROC property. There are 3 projects in the pipeline which are targeting the luxury market. Each development only has about 5-8 units.



- Cash per share of $0.17(including debt).



- The premium in price is delivered through 2 fronts; additional iron content and quality premium.



- Book value/share of $0.41 and working capital of $0.21 along with net current assets of $0.16 a share

I don't think the current trade war is helping their position.